Credit: BBJ/bizjournals
The price of office space in the Boston Market continue to ratchet up and squeeze out those who signed their lease in the recent downturn. Rents in Kendall Sq. have continued to climb due to limited supply and large national tech firms wanting to be there. Small firms are finding opportunities a couple of stops away on the Red Line’s Downtown Crossing stop, where the Class B market is pricing in the low to mid $30’s PSF.
A report in the Boston Business Journal offers some quantification for the pace of office space transactions in Cambridge and Kendall Square, noting “data from Cassidy Turley reveals that 323,135 square feet of space was absorbed in Cambridge’s already tight office market between Jan. 1 and June 30, while average rents in the life sciences and technology hub increased by 14 percent on a year-over-year basis…according to the report, office availability in Cambridge fell to 10.5 percent in the second quarter while average rents rose to $50.33 per square foot, up from about $44 a year earlier. The city’s office market is comprised of approximately 10 million square feet of leasable space.”
You can read the full article on the BBJ’s website, Bizjournals.